Dycom Industries Q2 revenue rises 14.5%

Overview

• Dycom Industries Q2 contract revenues rise 14.5% yr/yr to $1.378 bln

• GAAP diluted EPS hits record $3.33, up 35.4% yr/yr

• Net income increases 42.5% to $97.5 mln, driven by operational efficiency

Outlook

• Dycom expects fiscal 2026 revenue of $5.290 bln to $5.425 bln

• Company anticipates Q3 revenue between $1.38 bln and $1.43 bln

• Dycom forecasts Q3 adjusted EBITDA of $198 mln to $213 mln

• Company sees Q3 EPS between $3.03 and $3.36

Result Drivers

• CONTRACT REVENUE GROWTH - Contract revenues rose 14.5% to $1.378 bln, driven by both organic growth and contributions from acquired businesses

• OPERATIONAL EFFICIENCY - Improved margins were attributed to operational efficiency and operating leverage, according to CEO Dan Peyovich

• ACQUISITIONS - Revenue from acquired businesses contributed $139.8 mln to the qtr's total contract revenues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Dycom Industries Inc is $292.50, about 7.8% above its August 19 closing price of $269.57

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX5KQXGw